By Reducing the Required Reserve Ratio,the Fed Can Not Only

question 82

Multiple Choice

By reducing the required reserve ratio,the Fed can not only create excess reserves but also

• A)increase mortgage interest rates
• B)reduce borrowing by corporations
• C)increase the safety of bank deposits
• D)reduce the risk of bank failure
• E)increase the money multiplier

---

Definitions:

Free Riders

Individuals who benefit from resources, goods, or services without paying for them or contributing to their provision.

Supervisor

An individual in a leadership position responsible for overseeing the work of employees, providing guidance, and ensuring the quality and efficiency of their work.

Facilitator

An individual who helps a group to understand their objectives and assists them in planning how to achieve these objectives without taking a particular position in the discussion.

Participant

An individual who actively takes part in an activity, process, or event.